New Delhi: In a major reform move aimed at boosting investment and strengthening the insurance industry, the Union Cabinet has approved a bill to raise foreign direct investment (FDI) in the insurance sector to 100 per cent, up from the current cap of 74 per cent. The proposal was earlier announced by Finance Minister Nirmala Sitharaman as part of the government’s push to attract global capital and deepen insurance penetration in the country.
The move is expected to bring in fresh foreign funds, encourage the entry of global insurers, and enhance competition in the sector. Officials said higher foreign investment would help insurers expand coverage, improve product offerings, and adopt advanced technology, ultimately benefiting policyholders. The bill is likely to be introduced in Parliament in the coming session, marking a significant step in the government’s broader economic reform agenda.
